The deadline for the recapitalisation of insurance companies has been moved from June 2021 to January 2022, the National Insurance Commission (NIC) has said.
The economic impact of Coronavirus on businesses resulted in the extension of the deadline for the insurance companies.
In June 2019, the NIC announced a new minimum capital requirement for insurance companies operating in the country.
The new minimum capital requirement for life and non-life companies was increased from GH¢15 million to GH¢50 million with that of reinsurance companies moving from GH¢40 million to GH¢125 million.
Insurance broking companies also saw their stated capital increase from GH¢300,000 to GH¢500,000, while that of reinsurance broking companies was maintained at the current GH¢1 million.
Insurance companies were expected to file their recapitalization plans by December 2020 as well as meet the new requirement by June 2021.
However, with six months to the deadline, the NIC has come out to give the companies a further six months to adequately prepare to meet the new requirement.